Reviewed by Bill Anderson, FCCA, Chief Executive Officer of Assetica

Business Valuation for Spanish Owners Relocating to the UAE

By Bill Anderson, FCCA, Chief Executive Officer — Assetica, Dubai, UAE

Definition: Spanish business owners moving to Dubai usually need an independent business valuation at three points: to show whether their shares cross the article 95 bis exit tax thresholds and what the gain is, to support a UAE Golden Visa application on the business route, and to price the business when it is sold. A private company has no share price, so the valuation decides which side of the threshold you are on.

The Spanish exit tax turns on what your shares are worth

The thresholds are high, so many owners are outside the charge. For a private company, only a valuation can show that.

The article 95 bis exit tax

The exit tax applies if you were Spanish tax resident for at least ten of the previous fifteen years and your shares are worth more than EUR 4 million in total, or you hold at least 25% of a company and that holding is worth more than EUR 1 million.

Deferral depends on where you go

Moves within the EU or EEA are generally deferred. The UAE is outside both, so the tax is generally due, with deferral on request only in limited cases such as a temporary move for work. Ask your Spanish adviser before you set a departure date.

UAE Golden Visa (AED 2 million)

The business route asks for an independent report showing your own equity is worth at least AED 2 million, about USD 545,000. The report has to isolate your shareholding, net of debt, and be written for the UAE authority.

Selling the business

The deemed gain is taxed at the savings income rates, which run from 19% to 30%. Whenever you sell, the buyer and their funder need a price backed by normalised earnings.

Sources: Spanish tax agency

How it works

  1. Scoping call: We confirm the purpose, the valuation date, your structure and who will rely on the report, then quote a fixed fee in writing.
  2. Secure document collection: Spanish financial statements, the shareholders' register, shareholder agreements, management accounts and bank statements, plus the UAE licence once it exists.
  3. Valuation and reconciliation: We normalise earnings, apply the methods that fit the business and reconcile them into a supported conclusion.
  4. Signed report: Formatted for its reader, whether that is your home tax adviser or the UAE authority. A standard single-company report typically takes five to seven business days from complete documents.

One value that holds up on both sides of the move

The risk is two reports that disagree: a value used for Spanish tax that does not match the one in your Golden Visa file. We fix the valuation date, the method and the normalised earnings once, then format the result for each reader. A valuation that shows you are below the thresholds is as useful as one that sets the tax. We provide the valuation. We do not give Spanish tax advice.

Related valuation services

Read the full guide: Spain's exit tax when moving to Dubai. Business valuation in Dubai · Golden Visa business valuation · Europe business valuation

Frequently Asked Questions

Who pays the Spanish exit tax?

People who were Spanish tax resident for at least ten of the previous fifteen years and whose shares are worth more than EUR 4 million in total, or who hold at least 25% of a company where that holding is worth more than EUR 1 million.

Is the Spanish exit tax deferred if I move to Dubai?

Do not assume so. Deferral is generally available for moves within the EU or EEA. For moves elsewhere the tax is generally due, with deferral on request only in limited cases. Confirm your position with a Spanish tax adviser.

Why do I need a valuation for the Spanish exit tax?

A private company has no share price. The valuation shows whether your holding crosses the EUR 4 million or EUR 1 million threshold and, if it does, the gain the tax is charged on.

Is my Spanish accountant's valuation accepted for the UAE Golden Visa?

Usually not on its own. The UAE authority handling the application decides what it accepts, and it expects an independent report that isolates your own shareholding, net of debt, and shows it is worth at least AED 2 million. We confirm the current requirements with you at scoping.

How long does the valuation take?

A standard report for a single company typically takes five to seven business days from complete documents. Group structures, several share classes or property holdings take longer, and we agree the timetable at the scoping call.